8 minute read
Research Corner
The major challenges ahead and overcoming the ‘silo mentality’
Arkansans, county officials, the governor and General Assembly have several major challenges ahead. The mega issue consuming most of the oxygen at the state Capitol is addressing the issues on Medicaid, the governor’s Arkansas Works plan. Gov. Asa Hutchinson has called a special session beginning April 6 to consider adoption of Arkansas Works, his plan to use federal Medicaid dollars to purchase private insurance for Arkansans with incomes up to 138 percent of the poverty level. This plan is the result of the work and recommendations of the Health Reform Legislative Task Force. During the County Judges’ Association of Arkansas Annual Winter Conference, the state Surgeon General, Dr. Gregg Bledsoe, kindly accommodated the CJAA request for a presentation on Arkansas Works. He illuminated the innovations of Arkansas Works and negotiations between the state and U.S. Health and Human Services Secretary Sylvia Mathews Burwell. He also conveyed the significant hole in the state budget that will be created if Arkansas Works fails to be adopted and funded by the General Assembly. Gov. Hutchinson addressed the task force on Feb. 17 and explained that rejecting Medicaid expansion would create a deficit in the state budget in excess of $100 million. He explained that these cuts would be across the board: health-care services, public safety and education. He reiterated that in the absence of a new tax these cuts would also prevent the adoption of the new highway program. (Watch the governor address the task force at https://www.youtube.com/watch?v=aRPJldZMoLs). Addressing the road and bridge funding needs for the state, cities and counties is anticipated to be on the call for a separate special session following the 2016 fiscal session. After years of holding federal funds for roads and bridges flat, the U.S. Congress adopted a five-year federal transportation authorization that will provide the Arkansas State Highway Commission (ASHC) access to an additional $200 million in federal funding. This massive infusion of additional federal funding of a billion dollars over the next five years for our state highways is subject to a mandatory state match — $50 million dollars in state funding for each of the state fiscal years (FY) 2016 through 2021. Scott Bennett, director of the Arkansas State Highway and Transportation Department, attended the CJAA winter conference and explained the governor’s funding plan and also the ASHC plan for use of these much-needed funds. Bennett’s address underscored that the ASHC plans to use 80 percent of the funds on preservation. He further related the ASHC plan to use $450 million on bridge projects, including functionally deficient bridges, and the plan to use $250 million on safety measures. Taxpayers, businesses, farmers and industries that use the 7,000 to 8,000 miles of rural state highways should be assured that these plans anticipate those highways to be maintained. Surely, an infusion of an additional $250 million annually will eliminate any talk in the future of transferring rural state highways built by the ASHC to counties. For FY 2017 the governor’s plan is to appropriate: $20 million from his Rainy Day Fund; $20 million from unobligated surplus funds from FY 2015; $5.4 million historically deducted for State Central Services from the ½-penny sales tax on roads; and $4 million from the diesel tax (redirected from general revenue). (See the governor present his highway funding plan at https://www.youtube.com/watch?v=SI56ot788rg). Currently, the governor’s plan provides for the cities and counties to receive the traditional share under the 70-15-15 split for the $4 million of revenue redirected from general revenue derived from the tax on diesel fuel. By embracing the traditional 70-15-15 split and rejecting notions about transferring thousands of miles of state highways to counties, the governor has apparently recognized the long-standing coalition between the state and counties. However, for FY 2017 through and including 2021, the governor is proposing redirection of general revenues commencing at $1.5 million in FY 2017 and growing to $25 million in FY 2021. The CJAA and AAC hope to impress upon the governor and members of the General Assembly the basis for the revenue sharing. We have a system of state and local roads and bridges essential for our citizenry and vital for the state’s economy. The largest industry in Arkansas is agriculture, livestock and poultry, which are estimated to represent approximately $20 billion to the economy in Arkansas. CJAA President and Sebastian County Judge David Hudson has made it clear that the CJAA wants to continue to be a partner with the state. As stated by the Governor’s Working Group there is a dire need for additional revenues for the maintenance of our state and local roads and bridges. To further document those needs, the CJAA recently procured an estimate by an experienced civil engineer of the costs of maintaining and replacing the thousands of county bridges in Arkansas. The report focused on 778 functionally obsolete county bridges and 418 structurally deficient county bridges. The engineer reported more than $480 million in total bridge replacement projected cost. The report also calculated annual bridge maintenance cost at nearly $1.5 million per year. The engineer determined that 48 percent of these county bridges are load limited at 15 tons and are school bus safety status bridges
RESEARCH CORNER
Mark Whitmore AAC Chief Counsel
that will not allow for use by school buses. The estimated replacement cost for these bridges is more than $230 million. It is evident that the future of Arkansas necessitates that the state and counties continue our long-standing partnership in seeking revenues necessary to maintain our state and local system of roads and bridges. Polk County Judge Brandon Ellison prepared an excellent analysis of gravel road maintenance cost based upon his experience with 1,000 miles of gravel county roads and concluded that the projected annual maintenance based upon 1,000 miles of county gravel road at $2,564 per mile. Finally, Dr. Stacy Williams with the University of Arkansas provided a cost of $5,000 per mile of paved roads for annual county road maintenance. The CJAA has estimated that annual road maintenance costs for county roads (paved and gravel) is more than $150 million. Documentation of these annual maintenance and repair costs supports the conclusions of the Governor’s Working Group that current revenues are insufficient to keep up with maintenance. As a result of Amendment 86 of the Arkansas Constitution, the General Assembly is charged with the responsibility to adopt an annual budget for FY 2017. During the fiscal session, major appropriations concerning the Arkansas Department of Corrections (ADC), Arkansas Community Correction (ACC) and the Arkansas Department of Human Services (DHS) must be adopted. These state budgets collectively will necessarily address — or fail to address — prison and jail overcrowding, behavioral health and conveyance of medical services for inmates under the 90-day Medicaid reach back, etc. One of the biggest headwinds for policy makers and for state executive officials in addressing these major issues will be breaking down the barriers, such as the “silo mentality.” The “silo mentality” is a failure to share information or work outside a narrow task. Resistance to change and the “silo mentality” are frequently cited reasons for failures in corporations or government agencies. The General Assembly has called upon the Council of State Governments to assist in researching the needs in the criminal justice system and reinvesting those substantial taxpayer funds in a more prudent manner. Council of State Governments Research Manager Andrew Barbee spoke at the CJAA winter conference about
the Justice Reinvestment in Arkansas. He will be gathering data in Arkansas and periodically reporting to the Legislative Criminal Justice Oversight Task Force. He recently alerted the task force and Arkansans to the fact that Arkansas is No. 1 in the nation in corrections growth. As of Tuesday, March 1, 2016, the number of state inmates in our county jails is approximately 1,000. It is imperative that the state place adequate funding for holding state inmates in these state budgets. All tools must be available, including appropriating adequate funds for holding more state inmates out of state; for the construction of additional and appropriate state beds; re-entry beds; and diversion of low level misdemeanor drug and alcohol abuse offenders and the mentally ill. Please contact your legislators and make sure they are engaged. We can’t afford to have our local jails full of state prisoners. The local taxpayers should be able to have the use of their local jail for its intended purpose: a local jail. The CJAA winter conference also included a presentation by DHS “The ‘silo mentality’ is a failure to share information or work outside a narrow task. Resistance Director of Behavioral Services Charlie Green. He stated that regional crisis units and crisis to change and the ‘silo mentality’ are frequently cited reasons services are a priority for DHS. Several regions for failures in corporations or government agencies. ” are actively seeking a partnership with the state and their community for a regional crisis unit. A heroine epidemic has gripped the nation, including Arkansas. AAC, the Arkansas Sheriffs’ Association and the Community Mental Health Council have been advocating for crisis units and crisis intervention training for four years now. However, during that time the General Assembly has cut funding to our community mental health clinics by more than $8 million. The Arkansas Constitution, Article 19 §19 directs, “It shall be the duty of the General Assembly to provide by law for the support of institutions for the … treatment of the insane.” Budget hearings are approaching and offer the exact time at which state officials convert their talk into action. Please engage your legislators. Ask them to assure that DHS’ priority for regional crisis units in Arkansas are realized. How much longer will public safety and public health priorities be pushed down the road? It’s undisputed that money spent on regional crisis units is money well-spent in any state — even more so in the state ranked 50th in mental health and first in corrections growth.
